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Big Start to 2022 For Sugar Futures


While it will remain an area of concern until the COVID pandemic is in the world’s “rear-view mirror”, there are growing signs that global cocoa demand has been improving. While a stronger Eurocurrency provided support, cocoa’s main source of strength came from the European Cocoa Association (ECA) who reported that fourth quarter European grindings came in at 385,626 tonnes.


Coffee prices have climbed nearly 24 cents (up 10.8%) above the 2-month low from January 3rd. With the market receiving support from a bullish supply/demand outlook, coffee should be heading for a retest of its early December high.


The cotton market keeps moving higher and the uptrend has accelerated which leaves technical indicators extremely overbought. March futures traded to new contract highs for the third straight session and for the fourth time in five sessions. The move took the nearby contract through the November highs to the highest level since July 2011.


Big start to 2022 as ethanol demand may be on the rise. After losing 7% in value and reaching a 6-month low during the first 6 sessions of January, sugar prices are now on-track for a positive monthly result. Although key outside markets are providing a significant amount of carryover support, bullish supply factors are also fueling sugar’s upside move.

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